High growth expected for Hong Kong’s mobile payment market in the next 12 months

JETCO mobile payment survey: use of P2P transfers fast catching up with traditional transfer methods

14 December 2016, Hong Kong ─ Joint Electronic Teller Services Limited (‘JETCO’) announced the findings of its ‘Hong Kong’s Mobile Payment Survey’ (“Survey”) today, which show that mobile payment is on its way to become the next preferred payment method. It reveals that the proliferation of mobile payment services in Hong Kong has resulted in the rapid growth of the number of people using them. Among those surveyed, 76% had used the mobile payment services available in Hong Kong, indicating that the local mobile payment market could soon enter a period of high growth.

The findings are based on an online survey of 502 Hong Kong residents aged 18-45 with mobile devices. Highlights include:

  • 43% of those surveyed have used peer-to-peer (P2P) transfer service for it is still a nascent service in Hong Kong. Almost all of them said they will maintain or increase their current P2P transfer service usage in the next 12 months;
  • 29% of those who never used P2P transfer service said they want to try it in the next 12 months
  • 30% of those surveyed said they use P2P transfer service at least once a week.

Mr Angus Choi, Chief Executive Officer of JETCO, said, ‘I am glad to see such an increase in market demand for mobile payment services and that mobile payment is on track to become a part of daily life for Hong Kong public. However, for people to enjoy a truly convenient and barrier-free P2P service, there is a need for one interoperable P2P platform.’

Over 50% of those surveyed said security issues are the biggest reason for not using P2P transfer services. This was followed by those who cited the lack of interoperability between their transfer platforms and those of their friends.

Those surveyed also said they would like more diverse mobile payment services, including bill payment; choice of  credit cards, bank cards and bank accounts as payment method; cash top up for stored value facilities and electronic receipts. When asked about their selection of mobile payment service providers, 89% said they will use the services provided by banks, indicating that most consumers have greater confidence in banks.

‘To succeed in the mobile payment market, be it bank or tech company, one must be able to bridge the confidence gap between finance and technology.’ said Mr Choi. ‘JETCO and banks have been widely trusted in Hong Kong for long. Given that Hong Kong public has confidence in bank services, we therefore enjoy certain advantages in the market.’

JETCO Pay P2P operates on JETCO’s current inter-bank network and provides users with multi-level protection as well as the most comprehensive inter-bank transfer functions in Hong Kong. Bank-grade security features include those used by major banks, such as end-to-end encryption, dynamic PIN keyboard and a device binding verification function. JETCO Pay P2P is unique with direct connection to customers’ bank accounts, with no top-up required. Customers of participating banks can directly transfer money to any bank accounts at more than 30 banks, including both participating and non-participating banks as well as non-JETCO banks.

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For media enquiries:  

Jackie Cheung

Golin

Tel: (852) 2501 7901

E-mail: jcheung@golin.com

About Joint Electronic Teller Services Limited

Joint Electronic Teller Services Limited (‘JETCO’) was established in 1982 by five banks: Bank of China (Hong Kong) Limited; The Bank of East Asia, Limited; OCBC Wing Hang Bank Limited (formerly Chekiang First Bank Limited); Shanghai Commercial Bank Limited; and Wing Lung Bank Limited. In 2015, China UnionPay Co. Ltd. became a strategic investor of JETCO. Today, JETCO has more than 30 member banks in Hong Kong and Macau and supports a range of banking services for them across both regions.

JETCO currently operates more than 3,000 ATMs in Hong Kong, Macau and over 20 cities across mainland China, offering convenient, reliable local and cross-border ATM services.

JETCO also provides a range of value-added services to help member banks deliver innovative, secure online and mobile banking services to their customers. In early 2016, the company launched the JETCO Pay P2P inter-bank platform in partnership with 12 banks, which allows customers of these banks to transfer funds directly to account holders of major local banks anytime and anywhere with just the recipient’s mobile number.

For more details, please visit www.jetco.com.hk.

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